Overlooked Benefits of Nutrient Reductions in the Mississippi River Basin Bryan Parthum∗ Amy W. Andoy Abstract Improvements in local surface water quality in the Mississippi River Basin (MRB) can contribute to the regional environmental goals of reducing hypoxia in the Gulf of Mexico. To inform estimates of the benefits of water quality policy, we use a choice experiment survey in a typical sub-watershed of the MRB to estimate willingness to pay for local environmental improvements and helping to reduce hypoxia far downstream. We find that residents place large values on reduced local algal blooms, improved local fish populations and diversity, and meeting local commitments to help with the regional environmental problem. Keywords: Surface Water Quality, Nutrient Management, Nonmarket Valuation, Hypoxia, Algal Blooms, Fish JEL Classification: Q25, Q51, Q52, Q57, P25 Land Economics, November 2020, doi: 10.3368/wple.96.4.589 ∗Corresponding author:
[email protected]; U.S. EPA, Office of Policy, National Center for Environmental Economics. Work completed while at University of Illinois. The views expressed in this paper are those of the authors and do not necessarily reflect the views or policies of the U.S. Environmental Protection Agency. yProfessor, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics We would like to thank Maria Chu, Jason Knouft, and Alejandra Botero-Acosta for their work modeling the biophysical characteristics of the watershed, Ketong Xie for valuable research assistance, participants from the W4133 working group (2018) and the Program in Environmental and Resource Economics (pERE) at the University of Illinois Urbana-Champaign, Ben Gramig, Richard Ready, Klaus Moeltner, Robert Johnston, participants of the Social Cost of Water Pollution Working Group at Cornell University, and an anonymous reviewer for valuable feedback and suggestions made during the design, analysis, and submission stages of this study.